NEW YORK, Sept 19 Reuters The U.S. dollar eased against a basket of currencies on Tuesday as traders awaited a raft of central bank interest rate decisions this week, including one by the Federal Reserve on Wednesday.
The dollar index , which measures the currency against six major counterparts, was down 0.07 at 105.01, not far from the sixmonth high of 105.43 touched on Thursday. The index rose for its ninth straight week last week, its longest winning streak in nearly a decade.
Resilient U.S. growth has fueled a rebound in the dollar in recent weeks though the rally will likely be tested by a gauntlet of data and Wednesday39;s Fed interest rate decision.
The dollar came under some pressure against the euro on Tuesday following a report that indicated the European Central Bank may soon start discussing how to drain some of the excess liquidity in the banking system, while the yen wallowed near 10month lows against the dollar.
A Reuters report on Monday citing six sources said the debate over the multitrillioneuro pool of excess liquidity sloshing around banks was likely to start next month.
The excess cash dulls the impact of the ECB39;s rate hikes by reducing competition for deposits and results in hefty interest payments and ensuing losses by some central banks.
The euro was about flat at 1.06915, after rising as high as 1.0718 earlier in the session.
Some analysts, however, see further gains for the U.S. currency.
If we look at the price action, it has…